E5-7 (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Yasunari
Kawabata Company at December 31, 2014.
|
Finished Goods
|
$52,000
|
Cost of Goods Sold
|
$2,100,000
|
|
Unearned Revenue
|
90,000
|
Notes Receivable
|
40,000
|
|
Equipment
|
253,000
|
Accounts Receivable
|
161,000
|
|
Work in Process
|
34,000
|
Raw Materials
|
207,000
|
|
Cash
|
37,000
|
Supplies Expense
|
60,000
|
|
Equity Investments (Short-term)
|
31,000
|
Allowance for Doubtful Accounts
|
12,000
|
|
Customer Advances
|
36,000
|
Licenses
|
18,000
|
|
Cash Restricted for Plant Expansion
|
50,000
|
Additional Paid-in Capital
|
88,000
|
|
|
|
Treasury Stock
|
22,000
|
The
following additional information is available:
1.
Inventories are valued at lower-of-cost-or-market using LIFO.
2.
Equipment is recorded at cost. Accumulated depreciation, computed on a
straight-line basis, is $50,600
3. The
short-term investments have a fair value of $29,000 (Assume they are trading
securities.)
4. The
notes receivables are due April 30, 2016, with interest receivable every April
30. The notes bear interest at 6%(Hint: Accrue interest due on December 31,
2014.)
5. The
allowance for doubtful accounts applies to the accounts receivable. Accounts
receivable of $50,000 are pledged as collateral on a bank loan.
6. Licenses
are recorded net of accumulated amortization of $14,000
7. Treasury
stock is recorded at cost.
Instructions
Prepare
the current assets section of Yasunari Kawabata Company’s December 31, 2014,
balance sheet, with appropriate disclosures.
TUTORIAL PREVIEW
Prepare
the current assets section of Yasunari Kawabata Company’s December 31, 2014,
balance sheet, with appropriate disclosures.
Current
assets
|
Cash
|
$87,000
|
||
|
Less: Cash Restricted for Plant Expansion
|
-50,000
|
$37,000
|
|
|
Equity Investments (Short-term)
|
29,000
|
||
File name: E5-7 Yasunari.xls File type: xls PRICE: $3
